SparkLabs, a well-known early-stage venture capital firm, announced the completion of a $50 million AIM AI Fund, which will be mainly used to support its AIM-X accelerator in Saudi Arabia and other AI start-ups around the world. This move coincides with the AI investment boom. The rise of generative AI has spawned a large number of start-ups, and investors are actively looking for the next AI giant. The editor of Downcodes will give you a detailed explanation of SparkLabs’ investment strategy and its impact on the global AI industry landscape.
SparkLabs, an early-stage venture capital firm known for backing many well-known AI startups such as OpenAI, announced on Tuesday the completion of a $50 million new fund, the AIM AI Fund. The fund will support its AIM-X accelerator in Saudi Arabia as well as other AI startups around the world.
SparkLabs co-founder and CEO Bernard Moon said that about 35% of the new fund will be used to support accelerator participants, and the remaining 65% will be invested in Series A and Series B projects outside Saudi Arabia. The average investment for accelerator participants is $200,000 and can range up to $500,000, while Series A and Series B investments will range from $1 million to $5 million. The fund plans to invest in 50 to 70 companies in total.
The move reflects the investment boom in AI in recent years. The rise of generative AI has led to a surge in related startups, with investors scrambling to find the next potential giant. According to a report by Edge Delta, as of March 2024, there are more than 210 AI unicorn companies in the world with a valuation of over US$1 billion. Despite this, the United States still has the highest concentration of AI startups between 2013 and 2022, with a total of 4,633 startups.
SparkLabs’ new fund not only shows how AI opportunities are expanding globally, it also highlights the potential in emerging markets like Saudi Arabia. The AIM-X accelerator is a program launched by SparkLabs in Saudi Arabia earlier this year as part of the country’s national plan to strengthen AI technology over the next five years.
Moon emphasized that although the fund will allocate 10%-20% of investment in Saudi Arabia or the Middle East and North Africa region, most of the funds will be invested in the best AI startups in the world, which is expected to be mainly concentrated in the United States. This strategic layout reflects SparkLabs’ active positioning in the global AI innovation ecosystem and aims to capture the investment opportunities brought by the new round of technological revolution.
SparkLabs has invested in 14 startups through the Artificial Intelligence Fund, and these are the first companies selected:
viACT: A Hong Kong-based AI video analytics company focused on workplace safety and construction management.
IdeasLab: A New York-based startup developing AI solutions that analyze body movement without the use of sensors
Ahya: A Pakistan-based startup that develops AI-powered climate software for measuring, analyzing, reporting, reducing emissions and trading carbon offsets.
Swirl: An Indian video platform that uses artificial intelligence to help brands connect with customers on their websites and mobile apps through features such as video, user-generated content (UGC) comments, video ads and live shopping.
Contents.com: Italy’s AI content creation platform
Orko: Singapore’s artificial intelligence electric vehicle fleet management platform
Layla: a German artificial intelligence travel startup
Roughneck AI: San Francisco-based multi-modal real-world data platform for deep learning applications
Arctech Innovation: A startup spun out of the London School of Hygiene & Tropical Medicine that uses artificial intelligence to create sensor products for detecting pests and diseases
OptimHire: San Francisco’s AI recruiting platform
WideBot AI: Riyadh’s Arabic language generation AI platform
Orbo AI: This is a Mumbai-based startup that builds an AI tool to help beauty brands increase loyalty, engagement, and sales.
Vyrill: A San Francisco-based AI-powered video intelligence and marketing platform
Stack Tech Farm: A Berlin-based agtech startup specializing in vertical farming.
SparkLabs has more than 14 funds globally and two funds in Saudi Arabia. It has invested in more than 550 startups globally.
All in all, SparkLabs’ new $50 million fund investment strategy not only reflects the continued enthusiasm for AI investment, but also demonstrates its optimism for the global AI industry, especially the potential of emerging markets. This investment will further promote the prosperity and development of the global AI innovation ecosystem and deserves continued attention. The editor of Downcodes will continue to bring you more cutting-edge technology information.